|Cabot Oil & Gas Reports Well Successes in Pennsylvania and East Texas|
Cabot's most recent horizontal completion in the Marcellus, the Teel 8H, had an initial production (24-hour into sales) rate of 10.3 Mmcf per day with a maximum spot rate during that period of 12.0 Mmcf per day. Production from this well remains strong with a 30-day average rate of 9.8 Mmcf per day.
The Teel #6, a vertical Marcellus well, is flowing to sales at an initial 24-hour rate of 4.2 Mmcf per day. The well was completed over a 370-foot interval in the lower and upper Marcellus shale. "We believe the stimulation contacted most of the lower and upper shales, plus the Purcell limestone," added Dinges. "We consider this completion a critical event in the development of our Marcellus acreage."
The 2009 drilling program is on schedule to spud 18 additional horizontal
wells between now and year-end. Presently, eight rigs are drilling with a
ninth preparing to spud a well. "At this point we have three wells completing
and 12 waiting on completion or pipeline," commented Dinges. "I am extremely
pleased with the latest results and the pace of progress as our new team
transitions to our new regional office in
Additionally, infrastructure has been expanded to handle the physical
production with Cabot now having 100 Mmcf per day of capacity at its Teel
compression station. Firm take-away from the station increases to 70 Mmcf per
At Minden, the Company recently completed its first horizontal Cotton Valley Taylor sand well with an initial rate of 9.5 Mmcf per day. This well has performed extremely well with a 30-day average rate of 7.9 Mmcf per day. "We are pleased with both the initial results and the production stability of this well," said Dinges. "These rates significantly enhance the economics for Cotton Valley development in a lower price environment, and to that end, we have identified 50 to 60 potential locations."
Also, in response to the soft price for natural gas near-term, the Company
initiated an effort to exploit the horizontal Pettet at County Line - a known
oil reservoir. "We have completed our confirmation wells of the Pettet Lime
oil reservoir under the James Lime field. The most recent well confirms the
initial discovery drilled by Cabot this past spring," stated Dinges. The
Sustainable Forest #5 tested the Pettet in
The confirmation well, the Timberstar Redditt #4, drilled about 4,000 feet
from the discovery, was spud in
"Because Pettet oil economics are superior to the James at current commodity prices, we will shift some capital from the James program to the Pettet," added Dinges. "We have recently spud our third Pettet well and if the price disparity between natural gas and oil persists, we plan to expand the program further in 2010."
The Company has increased its investment program for 2009 from
"We have replaced some verticals with horizontals in
The statements regarding future financial performance and results and the
other statements which are not historical facts contained in this release are
forward-looking statements that involve risks and uncertainties, including,
but not limited to, market factors, the market price (including regional basis
differentials) of natural gas and oil, results of future drilling and
marketing activity, future production and costs, and other factors detailed in